If you didn't already know, stock of Amazon has been creeping up to the $1,000 mark over the past couple of weeks.
Between this being a popular momentum stock right now and my theory on big round numbers (discussed in a post many months ago). It was basically a layup that the stock would hit 1k. Not a matter of if, but just when.
That when was today!
And BITCOIN provided me the means to profit off the move!
Remember, AMZN is a $1,000 stock. So it costs that much for a single share!
Trading with bitcoin through 1broker.com you are not handcuffed by traditional market buying criteria.
Thus, I was able to open a small position to make a play on the run to 1k!
Above is a 5 minute chart covering the span of time I was in the trade. The first circle marks my entry and the second is where I exited today when we got the intraday spike through 1k.
The entry was just below $977 and I put in a stop on a break of $974 (the prior support of the stair stepping pattern AMZN was in last Tuesday). Basically I was risking $3 to make $23. I wish the risk-reward on all my trades was even half that good!
But Who Cares About That
Yeah, I'm happy the trade worked and it made money, but......
I'm still just exited that I can use Bitcoin to do commission free trading on 1broker.com
Granted, not every stock is listed, but the big names are and they have all the prominent currency pairs, which normally I need a separate Forex account for.
Loving it! Loving Bitcoin! Loving Steem!
It certainly is an new frontier!
Regards,
Lets hope Lykke get their vision, we will then have decentralized trading with crypto for all kinds of assets
First, that would be awesome. Second, didn't know about Lykke. Looks pretty good. Thanks!
just waiting to buy some, US persons cannot right now.
Volatility is so low in stocks right now it is hard to catch many big moves. If you stick to the likes on NVDA, AMD, etc at least you can get some decent swings there at the moment.
Yes indeed. I know people that are still active prop traders and they are dying off one by one because there is no money to be made intraday, volatility is absent. VIX near 10 like 90% of time past few years.
I started outlining the VIX as a great trade for a 1 month hold as of today. I opened a blog on the VIX and will post a long entry trade there when my indicators signal the trade. The VIX is already "assured" a move thru $12...just based on what the vry short term 10 day chart is now saying.
http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=&symb=vix&x=40&y=13&time=18&startdate=1%2F4%2F1999&enddate=2%2F18%2F2017&freq=7&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=0&maval=9&uf=0&lf=1024&lf2=2&lf3=8&type=2&style=320&size=4&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=9
Let's call it 11.50 anyway. I am "praying" that the computerized trading wizards don't take it there before they move it looower. Otherwise it'd likely mean more hurry up and wait.
Yeah, ain't that the truth. It's at the point anytime the VIX is under 11 I sell a put spread a few months out and wait for the small spike we will get, cover. And then wait till it goes back down again.
It's a "decent" strategy because one would "expect" a quick move either way at extremes. I personally don't like to take ANY short trade in any vehicle that is in beat down mode tho. Here's a play a straddle would work well on though. But the options are too thinly traded so I guess you could just sell calls up to $6. I'd short at 5.57 tho. I'm not good with straddles. And the downside is much greater than the upside for SIRI so use your own stragegy. But I'd have little fear of selling calls on SIRI up to my short entry at 5.57+ right now. Then enter SIRI via close to the money put that expires at least 30 days out. SIRI is already "perhaps" the most grossly overpriced stock out there imo.
http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=&symb=siri&x=65&y=7&time=18&startdate=1%2F4%2F1999&enddate=2%2F18%2F2017&freq=7&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=0&maval=9&uf=0&lf=1024&lf2=2&lf3=8&type=2&style=320&size=4&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=9
I can imagine. I have been trading on the side for years and these market conditions make it hard for anyone to make money.
I'll take the otehr side of this trade. :-)
It will likely trade back up thru $1000 again so just for fun I will open a limit to short 1 share at a limit of $1000bid...spot dead on. :-)
http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=&symb=amzn&x=37&y=20&time=18&startdate=1%2F4%2F1999&enddate=2%2F18%2F2017&freq=7&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=0&maval=9&uf=0&lf=1024&lf2=2&lf3=8&type=2&style=320&size=4&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=9
I will hold my short for AMZN $945 asked...spot dead on. Let me know how I did. :-) I "might" adjust my target lower from there.
I think getting short after a push through 1k is the right idea. The stock is so extended and 1k became a magnet. It's overbought like a mofo right now. Odds are in your favor!
Yeah, I did say limit to short at $1000 bid. Not there yet. It could easily punch $5 higher than that but I'm trying to pick an easy number to remember. :-)
That almost looks like a false breakout. I don't follow Amazon...what happened to the price since then?
It's pulled back a few points since this morning. I got out as soon as it breached 1k, that was the trade gotta stick to the plan.
AMZN is so due for a pullback. Look at the run it's made this year, looks like the BTC chart and even that pulled back!
Answered your question from my namesake acct, mistakenly.
Not a problem. I was already aware of the other account, so no confusion at all.
i love crypto... thanks for sharing
That's so cool that you were able to use Bitcoin to invest in stocks. Cryptocurrency is fascinating me more and more. After a quick bush-up on how to convert Steem to Bitcoin and sell it for cash, as well as actually how to buy Bitcoin and other currencies (it's been long enough since I've been on here that I mostly forgot how to do it), I sold my meager stock investments made through the Stash app. When the money is released to me in three business days, I intend to put it back into crypto, as that seems to be where the real profits are being made. My understanding of all of it is pretty rudimentary, but crypto seems like the best way to go with my investment funds right now.
Crypto provides a higher reward opportunity right now, however higher risk also comes with that. Only invest what you are comfortable seeing go, poof!
Oh, I know that. The amount of money I currently have to invest is something most experienced investors would laugh at, so I'm not too worried about it. It was just sitting there in Stash, anyway, subject to the daily ups and downs of the stock market. At least I sold it when it was worth slightly more than I paid for it. For weeks, it was worth disturbingly less. I feel more comfortable putting it in crypto right now, since I've been doing more research. I think it will do well. And, if it doesn't, well, I wasn't currently using it, anyway.